Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Accepted
Functional methodologies for tracking savings vary, leading to inconsistent assurance ratings
Recommendation
Each function sets its own methodology for tracking and claiming savings from its work, to reflect the different types of work they undertake. Functions are responsible for verifying the supporting data and confirming appropriate levels of governance to ensure confidence in the efficiencies before reporting. The GIAA examines the process functions use to calculate and assure the savings claimed by functions. In 2022, as part of its assessment of the 2020–21 savings, it found that most functions had clear methodologies in place to support the savings they report, and had gathered evidence to support them, but not all. In addition, it found that standards varied widely between functions, and that even within some functional teams, methods and evidence for savings were inconsistent. As part of its review of the 2021–22 savings, the GIAA again reported that the majority of functional teams had clear methodologies in place and evidence packs to support the headline savings claimed, but not all. Overall, the GIAA gave the reported savings for 2021–22 a ‘moderate’ assurance rating and found similar weaknesses to the previous year in the approaches taken by functions. In 2023, the GIAA similarly found that the Commercial Function had a detailed methodology for claiming savings. In comparison, the Property Function was new to the process of benefits tracking and its approach did not include the appropriate level of detail and documentation required, and so did not progress with the audit of the savings and they were not included in the most recent Cabinet Office exercise.15
Government Response Summary
The government commits to reviewing functional efficiency methodologies and implementing a plan to support improvements. It will transition these methodologies to the new Government Efficiency Framework by December 2025 to ensure government-wide consistency.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: end October 2024 The functions’ current respective methodologies for measuring and reporting efficiency savings reflect the diversity of functional activity undertaken in their respective areas. The Cabinet Office will review the different methodologies and set out a plan to support improvements, with functions capturing new or additional efficiencies as appropriate. The Cabinet Office will follow up with the outcome to the Committee in Autumn 2024. Beyond Autumn 2024, the Cabinet Office will be working closely with HMT to ensure that Functions’ current respective methodologies transition to the GEF which was published in July 2023. This sets out a government-wide standard framework for tracking, monitoring, and oversight of efficiency savings. Target implementation date: by December 2025 The functions’ respective methodologies for measuring and reporting efficiency savings reflect the diversity of functional activity undertaken in their respective areas. These methods range from release of cash (commercial), efficiencies baselined against projected scenarios (communications), fraud prevention, detection and recovery (counter fraud) to cash collected over business as usual (debt). The GEF will drive consistency in the way that government departments measure and report efficiencies. The GEF sets out what efficiency is, how it should be categorised, and best practice in gathering high quality information to measure and report efficiencies. The Cabinet Office and HMT are working closely together as the GEF is adopted by departments and functions. The Cabinet Office will ensure functions report savings that are commensurate with the savings target set, publishing this in the Spring 2025 efficiency and savings publication after they have been audited by the Government Internal Audit Agency (GIAF).